TransGaming arranges $5-million unit offering
2014-02-04 12:40 ET - News Release
Mr. Dennis Ensing reports
TRANSGAMING ANNOUNCES PRICING OF PROSPECTUS OFFERING
TransGaming Inc. has priced its previously announced offering of units of the company.
Each Unit will have an issue price of $0.25 per Unit and will be comprised of one common share of the Company (a "Unit Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant shall entitle the holder thereof to acquire one common share of the Company (a "Warrant Share"), for a period of twenty-four (24) months at an exercise price of $0.33.
Pursuant to the Offering, the Company intends to issue up to 20,000,000 Units for gross proceeds of up to $5,000,000. The Company has also granted the Agents an option (the "Over-Allotment Option") to cover over-allotments and for market stabilization purposes, exercisable in whole or in part, until the date that is 30 days after the date of closing of the Offering, to sell up to 3,000,000 additional Units at a price of $0.25 per Unit for additional gross proceeds to the Company of up to $750,000.
The Offering will be conducted on a best efforts agency basis pursuant to an agency agreement to be entered into among the Company and Global Maxfin Capital Inc. and Jacob Securities Inc., as co-lead agents and joint book-runners (collectively, the "Agents").
The Company will apply to list the Unit Shares and the Warrant Shares issuable on exercise of the Warrants on the TSX Venture Exchange (the "TSXV"). Listing will be subject to satisfying all of the requirements of the TSXV.
The Offering is expected to close on or about February 21, 2014. The Offering is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSXV.
The Company intends to use the net proceeds of the Offering to pay certain indebtedness, for general corporate purposes and to leverage its previous investment in research & development and launch a source-based portability technology later this year. TransGaming will also enhance and expand its existing graphics 3D rendering technology for application beyond its existing enterprise software capabilities.
A preliminary short form prospectus for the Offering was filed with the securities regulatory authorities in the provinces of Ontario, Alberta and British Columbia on February 3, 2014. No securities regulatory authority has either approved or disapproved of the contents of this press release.
We seek Safe Harbor.
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